Diana purchases an office building for $1,000,000, office equipment for $500,000 and computer equipment for $300,000. The assets are placed in service on September 15, 2020 and Diana does not elect section 179 or use bonus depreciation. Calculate the total depreciation deduction that Diana may take on her 2020 tax return. Asset Date placed in Service Recovery Period Original Basis Rate Depreciation Furniture & Fixtures 9/15/2020 7 yrs 800000 0.1429 114320 Commercial Office Building 9/15/2020 39 yrs 24610 100000 0.2461
Diana purchases an office building for $1,000,000, office equipment for $500,000 and computer equipment for $300,000. The assets are placed in service on September 15, 2020 and Diana does not elect section 179 or use bonus depreciation. Calculate the total depreciation deduction that Diana may take on her 2020 tax return. Asset Date placed in Service Recovery Period Original Basis Rate Depreciation Furniture & Fixtures 9/15/2020 7 yrs 800000 0.1429 114320 Commercial Office Building 9/15/2020 39 yrs 24610 100000 0.2461
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Diana purchases an office building for $1,000,000, office equipment for $500,000 and computer equipment for $300,000.
The assets are placed in service on September 15, 2020 and Diana does not elect section 179 or use bonus depreciation.
Calculate the total depreciation deduction that Diana may take on her 2020 tax retum.
Asset
Date placed in Service Recovery Period
Original Basis
Rate
Depreciation
Furniture & Fixtures
Commercial Office Building
9/15/2020
9/15/2020
7 yrs
800000
0.1429
114320
39 yrs
100000
0.2461
24610
Total Depreciation Deduction
138930
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